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Export Demand And Colder Temperature To Support Natural Gas Prices

By Abhishek BansalCommoditiesApr 13, 2021 05:56AM ET
www.investing.com/analysis/export-demand-and-colder-temperature-to-support-natural-gas-prices-200572720
Export Demand And Colder Temperature To Support Natural Gas Prices
By Abhishek Bansal   |  Apr 13, 2021 05:56AM ET
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Natural Gas prices which are currently trading near $2.547 with moderate losses from the previous session are likely to find support export demand and colder temperature forecast in the US, colder temperature increases heating demand. The Commodity Weather Group is expecting below-normal temperatures, Texas to North Dakota and east to New York from April 17-21. 

Gas flows to U.S LNG export terminals on Monday rose +42% y/y to 11.6 bcf. 

Gas prices also found support from increasing electricity output in the US and low gas production. As per Bloomberg data, U.S. electricity output in the week ended April 3 rose +5.1% y/y to 68,183 GWh (gigawatt hours) and gas production on Monday fell -2.2% y/y to 90.637 bcf/d.

However, weaker domestic demand is likely to limit the gains. Natural gas domestic demand in the US on Monday fell -4.2% y/y to 60.0 bcf.

Meanwhile, US natural gas inventories are down -11.9% y/y and are -1.3% below their 5-year average as per the latest EIA report. 

Baker Hughes reported last Friday that the number of active US nat-gas drilling rigs in the week ended April 9 rose by +2 rigs to a 1-year high of 93 rigs.

Natural gas prices are likely to find support on the cooler weather forecast and increasing export demand from the US. The immediate support level is seen near $2.450 while the immediate level of resistance is seen around $2.675

Export Demand And Colder Temperature To Support Natural Gas Prices
 

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Export Demand And Colder Temperature To Support Natural Gas Prices

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Comments (1)
Richard Daroi
Richard Daroi Apr 14, 2021 6:37AM ET
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hi and thanks for your analysis I know that usually the ng is correlate to the climate lately I see that the rise of oil and / or the fall of the dollar increases a rise of ng price what do you think?
 
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Disclaimer: Mr. Abhishek Bansal is a new-age, first-generation entrepreneur, and the Founder Chairman of Abans Group, a quintessential diversified business group, providing expertise in Broking Services, Non-Banking Financial Dealings, Financial Services, Agri-Commodity Services, Warehousing, Realty & Infrastructure, Gold Dore Refinery & Manufacturing, and Trading in Metal Products, Pharmaceuticals, Software Development & Wealth Management.
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